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The Complexity of Coordination

Author

Listed:
  • Davoud Taghawi-Nejad

    (Center for Metropolitan Studies)

  • Vipin P. Veetil

    (George Mason University)

Abstract

The traditional mechanism of finding Nash equilibria presumes economic actors are capable of performing computations that even computers would take far too long to complete. A decentralized and parallel process of interactions between simple economic actors is presented as a more plausible microfoundation of the concept of Nash equilibria. It is found that agent interactions on a scale-free network converge to an equilibrium within reasonable time. NP computational complexity of Nash equilibria does not diminish its empirical relevance.

Suggested Citation

  • Davoud Taghawi-Nejad & Vipin P. Veetil, 2017. "The Complexity of Coordination," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(2), pages 260-270, March.
    • Handle: RePEc:pal:easeco:v:43:y:2017:i:2:d:10.1057_s41302-016-0012-y
    DOI: 10.1057/s41302-016-0012-y
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    References listed on IDEAS

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